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Your Retail Stores accountant prepated the following income statement for the ladiest accessories aroduct Sales Less I Mariable expenses $3,050,000 1.433,500 1,616 500 Contribution margin
Your Retail Stores accountant prepated the following income statement for the ladiest accessories aroduct Sales Less I Mariable expenses $3,050,000 1.433,500 1,616 500 Contribution margin Less Fored expenses I Wages Insurance on inventory Advertising $1,098,000 61,000 671,000 1 830,000 $ (213,500) Net operating income (loss) Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $91,500. Required: Calculate the increase or decrease in the operating income in both alternatives Keep Accesories Product Line Drop Accesories Product Line Sales ficxed expenses Net operating income to
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